Gold and silver prices in the domestic futures market rebounded sharply on Friday, January 2, as firm spot demand and a softer dollar lifted sentiment at the start of the New Year. The move mirrors the strong momentum seen in global precious metals after a record-breaking 2025.
On the Multi Commodity Exchange (MCX), gold futures for February 5, 2026, opened higher by ₹1,195 at ₹1.36 lakh per 10 grams, compared with the previous close of ₹1.35 lakh per 10 grams.
Prices held on to most of the gains through the session, with the contract last trading at ₹1.36 lakh per 10 grams, up ₹795 or 0.59%.
Gold contracts for April 2026 also traded higher, rising ₹721 or 0.52% to ₹1.40 lakh per 10 grams, supported by steady buying interest amid expectations of a supportive global macro environment.
Silver futures outperformed gold, extending their sharp rebound. The March 5, 2026, silver contract opened ₹3,168 higher at ₹2.39 lakh per kg and later touched an intraday high of ₹2.43 lakh, marking a gain of over 3%. At last count, silver was trading at ₹2.42 lakh per kg, up ₹6,133 or 2.6%.
What is driving the domestic rally?
Market participants point to a combination of international cues and local demand as key drivers. Precious metals began 2026 on a strong footing globally, with gold and silver extending last year’s historic gains amid persistent geopolitical tensions, expectations of lower interest rates in the US, and continued central bank buying.
Minutes from the US Federal Reserve’s December meeting reinforced expectations that policymakers could ease monetary policy if inflation continues to cool, although differences remain on the timing and pace of rate cuts. Lower interest rate expectations typically support non-yielding assets such as gold and silver.
Geopolitical risks have also stayed elevated, with renewed tensions in Eastern Europe and tighter enforcement actions impacting global energy and trade flows, sustaining safe-haven demand for precious metals.